Pimco fund managing firm commented on Turkish assets

Pramol Dhawan, the manager responsible for emerging markets at U.S.-based Pimco, stated that they believe the CBRT (Central Bank of the Republic of Turkiye) will maintain its tight monetary policy in the "short term" due to high inflation concerns.

Pimco, one of the world's leading fund managers stated that it continues to view Turkish assets, which it increased late last year, positively.

Responding to written questions from Reuters, Dhawan said that steps taken in monetary and fiscal policy have contributed to the reduction of the current account deficit and the increase in foreign exchange reserves, stating, "We maintain a constructive approach towards Turkish assets."

Pimco is among the world's leading fund management companies, managing approximately $2 trillion in assets.

Dhawan stated, "Due to concerns over high inflation, the continuation of tight monetary policy is expected. Policymakers are trying to improve the monetary transmission mechanism with many macroprudential measures they have taken. These policies have started to show their effects on external vulnerabilities. While the current account deficit is decreasing, the Central Bank continues to accumulate foreign exchange reserves."

Foreign investors had exited Turkish assets, particularly government bonds, in recent years due to the government's unconventional economic policies. As the new economy returns to conventional policies, foreign investors have started to turn back to Turkish assets, and Pimco added Turkish assets to its portfolio late last year.

Dhawan stated, "While policymakers ensure the gradual reduction of the KKM (Currency Protected Deposit) amount, de-dollarization continues."